# ASC 715-958: Compensation—Retirement Benefits — Not-for-Profit Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/715/958/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:02:23.996Z to 2026-09-10T01:02:46.650Z Record version: sha256:a8cd844beb77043fabb30b5852a4db90f1981ec30a60cce5c8c29ddc728e4620 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-958: Compensation—Retirement Benefits — Not-for-Profit Entities ### Machine-generated study aids ```json { "summary": "This Subtopic adapts Topic 715 (pension and other postretirement benefits) for not-for-profit entities, which do not report other comprehensive income. Everywhere Topic 715 would require net gains or losses, prior service costs or credits, and transition assets or obligations to run through OCI/AOCI, an NFP instead recognizes those amounts as changes in net assets without donor restrictions that have not yet been reclassified into net periodic benefit cost. Those amounts, and the non-service components of net periodic benefit cost, are presented in separate line items outside any intermediate measure of operations (or performance indicator for business-oriented health care NFPs).", "key_points": [ "An NFP applying the recognition provisions of paragraph 715-30-25-4 substitutes 'changes in net assets without donor restrictions arising from a defined benefit plan (or postretirement benefit plan) not yet reclassified as components of net periodic benefit cost' for AOCI references (715-958-25-1).", "The same substitution applies to gains and losses, prior service costs or credits, and transition assets or obligations under Sections 715-30-35 and 715-60-35, and to paragraphs 715-30-35-65, 715-60-35-127, and 715-30-35-25(a) (715-958-35-1 through 35-5).", "Gains and losses not immediately recognized in net periodic pension cost under 715-30-35-21 are recognized in accordance with 958-715-45-1 (715-958-35-6); NFPs not reporting OCI apply 715-30-35-79 through 35-96 in an analogous manner (715-958-35-7).", "The net gain or loss, prior service costs or credits, and transition asset or obligation that would go to OCI are reported as a separate line item or items, apart from expenses, outside an intermediate measure of operations or performance indicator (954-220-45-5), within changes in net assets without donor restrictions (715-958-45-1).", "Amounts previously so recognized are reclassified to net periodic pension cost under 715-30-35-3 through 35-28 or to net periodic postretirement benefit cost under 715-60-35-7 through 35-40, with the contra adjustment reported in the same line item (715-958-45-2).", "Service cost is reported in the same line item(s) as other employee compensation costs (unless capitalized), while the other components defined in 715-30-35-4 and 715-60-35-9 are reported separately and outside any intermediate measure of operations; both are reported by functional expense classification per 958-720-45-2 and 958-720-45-15 (715-958-45-3).", "Disclosures under Section 715-20-50 are made with substitutions: 'changes in net assets without donor restrictions' for OCI/AOCI and results of operations, and 'statement of activities' for 'statement of income' (715-958-50-1)." ], "categories": [ "Compensation and benefits", "Not-for-profit", "Presentation", "Disclosure" ], "audience_level": "intermediate", "student_note": "The whole point of this Subtopic is translation: NFPs have no OCI, so every Topic 715 reference to OCI/AOCI becomes a change in (and cumulative amount within) net assets without donor restrictions. Students commonly confuse the two required separate line items — one for the non-service components of net periodic benefit cost, and a different one for gains/losses, prior service cost, and transition amounts not yet reclassified into that cost.", "related_topics": [ "715-30", "715-60", "715-20", "958-720", "954-220", "220" ], "key_concepts": [ "not-for-profit entity", "net assets without donor restrictions", "net periodic pension cost", "net periodic postretirement benefit cost", "prior service cost or credit", "transition asset or obligation", "intermediate measure of operations", "performance indicator" ] } ``` Source downloaded (UTC): 2026-09-10T01:02:23.996Z to 2026-09-10T01:02:23.996Z Record version: sha256:aff7a60a0008df5aec7c9deb9afc5e37bbb85bb7cc66bc7e2a911a453bf11e63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-958-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/715/958/#00-status) SEC content: no ##### [715-958-00-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:23.996Z to 2026-09-10T01:02:23.996Z Record version: sha256:3d5210ba7e2d7a24d5611f68b4e0bbf7c7723edb8935ee7052ab1bac491af7e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2010-0701/28/2010
Donor-Imposed ConditionAddedAccounting Standards Update No. 2018-0806/21/2018
Donor-Imposed RestrictionAddedAccounting Standards Update No. 2016-1408/18/2016
Functional ClassificationSupersededAccounting Standards Update No. 2016-1408/18/2016
Functional Expense ClassificationAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets without Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Promise to GiveAddedAccounting Standards Update No. 2018-0806/21/2018
Unrestricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
958-715-25-1AmendedAccounting Standards Update No. 2016-1408/18/2016
958-715-35-1 through 35-5
AmendedAccounting Standards Update No. 2016-1408/18/2016
958-715-45-1AmendedAccounting Standards Update No. 2017-0703/10/2017
958-715-45-1AmendedAccounting Standards Update No. 2016-1408/18/2016
958-715-45-2AmendedAccounting Standards Update No. 2017-0703/10/2017
958-715-45-2AmendedAccounting Standards Update No. 2016-1408/18/2016
958-715-45-3AddedAccounting Standards Update No. 2017-0703/10/2017
958-715-50-1AmendedAccounting Standards Update No. 2018-1408/28/2018
958-715-50-1AmendedAccounting Standards Update No. 2016-1408/18/2016
958-715-55-4AmendedAccounting Standards Update No. 2017-0703/10/2017
958-715-55-4 through 55-8
AmendedAccounting Standards Update No. 2016-1408/18/2016
958-715-55-6AmendedAccounting Standards Update No. 2017-0703/10/2017
958-715-55-7AmendedAccounting Standards Update No. 2017-0703/10/2017
958-715-55-8SupersededAccounting Standards Update No. 2017-0703/10/2017
Source downloaded (UTC): 2026-09-10T01:02:26.533Z to 2026-09-10T01:02:26.533Z Record version: sha256:157331563ea9f274aa20f9f37fe2eec4618036db8a4cb890d9b6f1e490a26bbb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-958-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/715/958/#05-overview-and-background) SEC content: no ##### [715-958-05-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:26.533Z to 2026-09-10T01:02:26.533Z Record version: sha256:a966b25fb84ab02ff6fe988d76bca670905a472321c3edda646f9a1468deb079 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides accounting and reporting guidance for retirement benefit plans sponsored by [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs). This guidance is essential to the application of Topic 715 by an NFP and shall be applied in conjunction with that Topic. Source downloaded (UTC): 2026-09-10T01:02:28.764Z to 2026-09-10T01:02:28.764Z Record version: sha256:16306cdff951c79aa388888a5ce435909bcec767f99de3e58416dc0b09b26698 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-958-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/715/958/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [715-958-15-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:28.764Z to 2026-09-10T01:02:28.764Z Record version: sha256:7b5a5ce9b00bda7b8c0485ce09da5293a3cce2bc61d375933f88b7742db13634 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15, with specific qualifications noted below. #### Transactions ##### [715-958-15-2](https://asc.understandingaccounting.org/asc/715/958/#715-958-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:28.764Z to 2026-09-10T01:02:28.764Z Record version: sha256:4e189a5d4c598c3bc81b3e941f9bc65c0cf2ba78d1af72c16a893c58f4a128b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic applies to the same transactions outlined in Section 715-10-15. Source downloaded (UTC): 2026-09-10T01:02:35.378Z to 2026-09-10T01:02:35.378Z Record version: sha256:1f0acd99f2c40dafd25db10d4dc13aff6ac47c463c4d305acdfe344f48934775 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-958-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/715/958/#25-recognition) SEC content: no ##### [715-958-25-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:35.378Z to 2026-09-10T01:02:35.378Z Record version: sha256:0c56ff66ef5edd4fce6aaacedaf91c536017cb057d0c1b1a2a2a084460df079e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) applies the recognition provisions of the following paragraph, the references to net gains or losses, prior service costs or credits, and transition asset or obligation in accumulated other comprehensive income shall instead be to the gains or losses, the prior service costs or credits, and the transition asset or obligation that have been recognized as changes in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") arising from a defined benefit plan (or a postretirement benefit plan) but not yet reclassified as components of net periodic pension cost (or net periodic postretirement benefit cost): 1. a Paragraph [715-30-25-4](https://asc.understandingaccounting.org/asc/715/30/#715-30-25-4). Source downloaded (UTC): 2026-09-10T01:02:37.266Z to 2026-09-10T01:02:37.266Z Record version: sha256:19eaf5eb9e5de18031be8b7a50b01630fee6766ba21a4a68b67161655a1d0498 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-958-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/715/958/#35-subsequent-measurement) SEC content: no ##### [715-958-35-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:37.266Z to 2026-09-10T01:02:37.266Z Record version: sha256:c037bcd1c82bff4b696d6a2cb10818d4d189648b14ec22889b46cf155ef4761f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) applies the subsequent measurement provisions of the following Sections, the references to the prior service costs or credits included in accumulated other comprehensive income shall instead be to the prior service costs or credits that have been recognized as changes in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") arising from a defined benefit plan (or a postretirement benefit plan) but not yet reclassified as components of net periodic pension cost (or net periodic postretirement benefit cost): 1. a Section 715-30-35 2. b Section 715-60-35. ##### [715-958-35-2](https://asc.understandingaccounting.org/asc/715/958/#715-958-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:37.266Z to 2026-09-10T01:02:37.266Z Record version: sha256:b24c075658f923cbabe7ff03e912f11ae21c8b5e3afde69e82922a89337553ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an NFP applies the subsequent measurement guidance in the following Sections, the references to gains and/or losses included in accumulated other comprehensive income shall instead be to the gains and/or losses that have been recognized as changes in net assets without donor restrictions arising from a defined benefit plan (or a postretirement benefit plan) but not yet reclassified as components of net periodic pension cost (or net periodic postretirement benefit cost): 1. a Section 715-30-35 2. b Section 715-60-35. ##### [715-958-35-3](https://asc.understandingaccounting.org/asc/715/958/#715-958-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:37.266Z to 2026-09-10T01:02:37.266Z Record version: sha256:001148a5c2f78cb6c486e6ecc471f3c5c21d5cca7cdb850ac20032c5e131125a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an NFP applies the subsequent measurement provisions of the following Sections, the references to the transition obligation or asset remaining in accumulated other comprehensive income shall instead be to the transition obligation or asset that has been recognized as a change in net assets without donor restrictions arising from a defined benefit plan (or a postretirement benefit plan) but not yet reclassified as a component of net periodic pension cost (or net periodic postretirement benefit cost): 1. a Section 715-30-35 2. b Section 715-60-35. ##### [715-958-35-4](https://asc.understandingaccounting.org/asc/715/958/#715-958-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:37.266Z to 2026-09-10T01:02:37.266Z Record version: sha256:b7f32ba1060bcdc1d5f84b79571a56bb0c93cdc8828f6c5f6904f017f0560225 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an NFP applies the subsequent measurement provisions of the following paragraphs, references to amounts previously recognized in other comprehensive income shall be instead to amounts that have been recognized as a change in net assets without donor restrictions arising from a defined benefit plan (or a postretirement benefit plan) but not yet reclassified as components of net periodic pension cost (or net periodic postretirement benefit cost): 1. a Paragraph [715-30-35-65](https://asc.understandingaccounting.org/asc/715/30/#715-30-35-65) 2. b Paragraph [715-60-35-127](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-127). ##### [715-958-35-5](https://asc.understandingaccounting.org/asc/715/958/#715-958-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:37.266Z to 2026-09-10T01:02:37.266Z Record version: sha256:b056d29b87e9c0ad459f36ec1faf08d117630b093473020fc6a98046041fcfa1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an NFP applies the subsequent measurement provisions of paragraph [715-30-35-25(a)](https://asc.understandingaccounting.org/asc/715/30/#715-30-35-25), references to the net balance included in accumulated other comprehensive income shall be instead to the net balance that has been recognized as a change in net assets without donor restrictions arising from a defined benefit plan but not yet reclassified as components of net periodic pension cost. ##### [715-958-35-6](https://asc.understandingaccounting.org/asc/715/958/#715-958-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:37.266Z to 2026-09-10T01:02:37.266Z Record version: sha256:c54c6b2a34465372eb931bdf304a0d82b34e2a8109a4f399b48f9fc7da6621ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an NFP applies the subsequent measurement guidance in paragraph [715-30-35-21](https://asc.understandingaccounting.org/asc/715/30/#715-30-35-21), the gains and losses that are not recognized immediately as a component of net periodic pension cost shall be recognized in accordance with paragraph [958-715-45-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-45-1). ##### [715-958-35-7](https://asc.understandingaccounting.org/asc/715/958/#715-958-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:37.266Z to 2026-09-10T01:02:37.266Z Record version: sha256:ac1368ba325d6a4ecc8f98c43e7c9b45b290fc9b67a5da85c920153f789fb5c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-profit employers that do not report other comprehensive income in accordance with the provisions of Topic 220, shall apply the provisions of paragraphs [715-30-35-79 through 35-91](https://asc.understandingaccounting.org/asc/715/30/#715-30-35-79) and [715-30-35-92 through 35-96](https://asc.understandingaccounting.org/asc/715/30/#715-30-35-92) in an analogous manner that is appropriate for their method of reporting financial performance and financial position. Source downloaded (UTC): 2026-09-10T01:02:40.011Z to 2026-09-10T01:02:40.011Z Record version: sha256:4fbe160c2eaa74bc4f889dce450ec6f8fc2ebe08b8bc2c34df537aa4e366e690 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-958-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/715/958/#45-other-presentation-matters) SEC content: no ##### [715-958-45-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:40.011Z to 2026-09-10T01:02:40.011Z Record version: sha256:cb016aae50644b5f746384d41f8fae10032200b8610852b32de6699411b0d83e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) shall recognize as a separate line item or items, outside an intermediate measure of operations, if one is presented, or a performance indicator as required by paragraph [954-220-45-5](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-5) for NFP business-oriented health care entities, within changes in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."), apart from expenses, the net gain or loss, the prior service costs or credits, and the transition asset or obligation that would be recognized in other comprehensive income pursuant to the following Sections: 1. a Section 715-30-35 2. b Section 715-60-35. ##### [715-958-45-2](https://asc.understandingaccounting.org/asc/715/958/#715-958-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:40.011Z to 2026-09-10T01:02:40.011Z Record version: sha256:48153004897401a345fa2d0fca24b4600db47f3dfaef034f8200979f58980942 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP shall reclassify a portion of the net gain or loss, the prior service costs or credits, and the transition asset or obligation previously recognized in accordance with paragraph [958-715-45-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-45-1) as follows: 1. a To net periodic pension cost, pursuant to the recognition and amortization provisions of paragraphs [715-30-35-3 through 35-28](https://asc.understandingaccounting.org/asc/715/30/#715-30-35-3) 2. b To net periodic postretirement benefit cost, pursuant to the recognition and amortization provisions of paragraphs [715-60-35-7 through 35-40](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-7) . The contra adjustment or adjustments to the initially recognized net gain or loss, the prior service costs or credits, and the transition asset or obligation shall be reported in the same line item or items, outside an intermediate measure of operations, if one is presented, or a performance indicator as required by paragraph [954-220-45-5](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-5) for NFP business-oriented health care entities, within changes in net assets without donor restrictions, apart from expenses, as the initially recognized amounts as identified in paragraph [958-715-45-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-45-1). ##### [715-958-45-3](https://asc.understandingaccounting.org/asc/715/958/#715-958-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:40.011Z to 2026-09-10T01:02:40.011Z Record version: sha256:b9ef317f97fa418f33555ada8b11e0868de424e8b9c4e821e0aa1b901fcf9d2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP shall report in the statement of activities: 1. a The service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period (except for the amount being capitalized, if appropriate, in connection with production or construction of an asset) 2. b The other components as defined in paragraphs [715-30-35-4](https://asc.understandingaccounting.org/asc/715/30/#715-30-35-4) and [715-60-35-9](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-9) separately from the service cost component and outside an intermediate measure of operations, if one is presented, within changes in net assets without donor restrictions. If a separate line item or items are used to present the other components, that line item or items shall be appropriately described and different from the separate line item or items used to present the net gain or loss, the prior service costs or credits, and the transition asset or obligation that would be recognized in other comprehensive income in accordance with Sections 715-30-35 and 715-60-35. The service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost shall be reported by [functional expense classification](https://asc.understandingaccounting.org/glossary/f/#functional-expense-classification "A method of grouping expenses according to the purpose for which costs are incurred. The primary functional classifications of a not-for-profit entity are program services and supporting activities.") in accordance with paragraphs [958-720-45-2](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-2) and [958-720-45-15](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-15). Source downloaded (UTC): 2026-09-10T01:02:42.723Z to 2026-09-10T01:02:42.723Z Record version: sha256:5f5cbce102e6b0793888021c9ce0c36d17c66e911b9d2d9b32fd29b08259f17e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-958-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/715/958/#50-disclosure) SEC content: no ##### [715-958-50-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:42.723Z to 2026-09-10T01:02:42.723Z Record version: sha256:fa110e8757ce44b425a23eefb80cc2fbd3cab2190780b02a485f1c72a12e3fa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs) shall make the following substitutions when applying the disclosure requirements of Section 715-20-50: 1. a The references to the net gain or loss, net prior service cost or credit, and net transition asset or obligation recognized in other comprehensive income in paragraphs [715-20-50-1(i)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1) and [715-20-50-5(h)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-5) shall instead be to such amounts recognized as changes in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") arising from a defined benefit plan but not yet included in net periodic benefit cost. 2. b The references to reclassification adjustments of other comprehensive income in paragraphs [715-20-50-1(i)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1) and [715-20-50-5(h)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-5) shall instead be to reclassifications to net periodic benefit cost of amounts previously recognized as changes in net assets without donor restrictions arising from a defined benefit plan but not included in net periodic benefit cost when they arose. 3. c The references to the net gain or loss, net prior service cost or credit, and net transition asset or obligation recognized in accumulated other comprehensive income in the following paragraphs shall instead be to such amounts that have been recognized as changes in net assets without donor restrictions arising from a defined benefit plan but not yet reclassified as components of net periodic benefit cost: 1. 1 Paragraph [715-20-50-5(i)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-5) 2. 2 Paragraph [715-20-50-1(j)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1) 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2018-14](https://asc.understandingaccounting.org/updates/asu-2018-14/). 4. 4 [Subparagraph superseded by Accounting Standards Update No. 2018-14](https://asc.understandingaccounting.org/updates/asu-2018-14/). 4. d The references to results of operations (including items of other comprehensive income) in paragraphs [715-20-50-1](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1) and [715-20-50-5](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-5) shall instead be to changes in net assets without donor restrictions and the references to a statement of income in those paragraphs shall instead be to a statement of activities. Source downloaded (UTC): 2026-09-10T01:02:44.737Z to 2026-09-10T01:02:44.737Z Record version: sha256:51b921576256993641c7ed34c33801f762052eb45b3d27d7a4ab7ccf8c912006 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-958-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/715/958/#55-implementation-guidance-and-illustrations) SEC content: no ##### [715-958-55-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:44.737Z to 2026-09-10T01:02:44.737Z Record version: sha256:6d1c9c4e325ae4b5e117105a7e3265fa4522924194f33b170cec71c7d13e811b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section, which is an integral part of the requirements of this Subtopic, provides general guidance to be used by a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) in reporting its retirement benefit plans. #### Implementation Guidance ##### [715-958-55-2](https://asc.understandingaccounting.org/asc/715/958/#715-958-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:44.737Z to 2026-09-10T01:02:44.737Z Record version: sha256:1a98acc17ad2551eff0ce7f61fc684ad3623b83874993dfe18d8bc6e13e7fb62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For reporting by a not-for-profit entity (NFP) that has a defined benefit pension plan that covers employees at the national and all local chapters to which each chapter is required to contribute based on a predetermined formula and for which plan assets are not segregated or restricted on a chapter-by-chapter basis, see paragraph [715-30-55-63](https://asc.understandingaccounting.org/asc/715/30/#715-30-55-63). #### Illustrations ##### [715-958-55-3](https://asc.understandingaccounting.org/asc/715/958/#715-958-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:44.737Z to 2026-09-10T01:02:44.737Z Record version: sha256:cc37ab79212224abba8fc9b32eb4bab52e0e0abe59d4b13c52be8a446beb30b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in Sections 958-715-35 and 958-715-45. ##### [715-958-55-4](https://asc.understandingaccounting.org/asc/715/958/#715-958-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:44.737Z to 2026-09-10T01:02:44.737Z Record version: sha256:34c8f8d9f85a3bf2f1d0d38d13ad4b71bc6db14a0ead98974d55c92439a7ba08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity A's (NFP A's) actuary prepares a 12-month projection of net periodic pension cost for July 1, 20X7, to June 30, 20X8. The funded status of NFP A's defined benefit pension plan as of June 30, 20X7, and June 30, 20X8, and amounts to be recognized as components of net periodic pension cost are shown in paragraph [958-715-55-5](https://asc.understandingaccounting.org/asc/715/958/#715-958-55-5). The cumulative net loss not yet recognized as a component of net periodic pension cost is less than 10 percent of the greater of the projected benefit obligation and the market-related value of plan assets. No plan amendments affect the period from July 1, 20X7, to June 30, 20X8. Assumptions about benefit payments and [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") made by NFP A have not been included in this Example. During the fiscal year ending June 30, 20X8, NFP A does the following: 1. a Recognizes the additional net loss as a change in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") and a change in the liability that reflects the underfunded status of the plan 2. b Recognizes the amortization of the transition obligation as a component of net periodic pension cost 3. c Recognizes the amortization of prior service cost as a component of net periodic pension cost 4. d Recognizes net periodic pension cost within the appropriate functional expense categories for 20X8, with the service cost component reported as part of the intermediate measure of operations (for example, increase in net assets from operating activities) and the other components reported in a separate line item, outside the intermediate measure of operations presented by NFP A, within changes in net assets without donor restrictions. ##### [715-958-55-5](https://asc.understandingaccounting.org/asc/715/958/#715-958-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:44.737Z to 2026-09-10T01:02:44.737Z Record version: sha256:24808ecec820749f9a9513de91ce82cc2c956fe6dcdf159845bbe4d35e66c43b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. These facts are illustrated in the following table. - ![](https://asc.understandingaccounting.org/asc-img/GUID-00F3E019-32A7-4BDD-B829-2E264795C0EE-low.gif) 6/30/X7 6/30/X8 (in thousands) Projected benefit obligation " $(3,670)" " $(3,600)" Plan assets at fair value " 2,510 " " 2,385 " Funded status " $(1,160)" " $(1,215)" Items not yet recognized as a component of net periodic pension cost: Transition obligation $240 $200 Prior service cost 275 175 Net loss 315 365 $830 $740 Components of projected 12 months' net periodic pension cost for fiscal year 20X8: Service cost $110 Interest cost 120 Expected return on plan assets (125) Amortization of prior service cost 100 Amortization of net (gain) loss - Amortization of transition obligation 40 Net periodic pension cost $245 ##### [715-958-55-6](https://asc.understandingaccounting.org/asc/715/958/#715-958-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:44.737Z to 2026-09-10T01:02:44.737Z Record version: sha256:dcbc81bdb4f6ee51c4ef2cbd33234f3c4ede645997eb169ce14cddee9d943f6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the year ending June 30, 20X8, NFP A recognizes the amortizations of the transition obligation and prior service cost as components of net periodic pension cost and recognizes the additional loss arising during the year. The journal entries are as follows: 1. a Recognize the additional loss in net assets without donor restrictions. - ![](https://asc.understandingaccounting.org/asc-img/GUID-15741455-49DE-4F4F-8C3B-FA3454835F1E-low.gif) Net loss not yet recognized in net periodic pension cost 50 Liability for pension benefits 50 2. b Recognize the amortization of the transition obligation in net periodic pension cost. - ![](https://asc.understandingaccounting.org/asc-img/GUID-00C9B11D-4518-4221-A003-C052C08CFFA6-low.gif) "Net periodic pension cost—transition obligation (functionalized)" 40 Transition obligation not yet recognized in net periodic pension cost 40 3. c Recognize the amortization of prior service cost in net periodic pension cost. - ![](https://asc.understandingaccounting.org/asc-img/GUID-E2C73C65-0D1C-461D-8369-78A2CA2D528E-low.gif) "Net periodic pension cost—prior service cost (functionalized)" 100 "Prior service cost not yet recognized in net periodic pension cost" 100 4. d Recognize service cost separately and recognize the interest cost and the expected return on plan assets together in net periodic pension cost. - ![](https://asc.understandingaccounting.org/asc-img/GUID-B13ABB02-0C2A-47EB-87C3-21AC7BE2EB55-low.gif) Net periodic pension cost—service cost (functionalized) 110 Net periodic pension cost—interest cost and expected return on plan assets (functionalized) 5 (b) Liability for pension benefits 105 "(a) Footnote superseded. " (b) Equals $120 interest cost - $125 expected return on plan assets. In its statement of activities, NFP A presents the service cost component by appropriate functional expense categories within the intermediate measure of operations (for example, increase in net assets from operating activities), within changes in net assets without donor restrictions, and presents the other components (encompassing the interest cost, the expected return on plan assets, and the amortizations of the transition obligation and prior service cost) in a separate line item (different from the separate line item discussed below for the items not yet recognized as components of net periodic pension cost) outside the intermediate measure of operations, within changes in net assets without donor restrictions. NFP A presents in a separate line item, outside the intermediate measure of operations, within changes in net assets without donor restrictions, the items (encompassing the net loss arising during the year and the changes in the transition obligation and prior service cost) not yet recognized as components of net periodic pension cost. NFP A would disclose, in the notes to financial statements, the information required by paragraph [958-715-50-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-50-1). NFP A also would disclose, in the notes to financial statements, an analysis of all expenses (including the service cost component and the other components of net periodic pension cost) by their nature and function in accordance with paragraphs [958-720-45-2](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-2) and [958-720-45-15](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-15). ##### [715-958-55-7](https://asc.understandingaccounting.org/asc/715/958/#715-958-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:44.737Z to 2026-09-10T01:02:44.737Z Record version: sha256:45a825b8f2def05ef2614e405f6bdfb484d48c50e7e36e98e71ccde36dd9d1b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following statement of activities reflects how NFP A presents the service cost component and the other components of net periodic pension cost and the items not yet recognized as components of net periodic pension cost in its statement of activities, which presents an intermediate measure of operations. - ![](https://asc.understandingaccounting.org/asc-img/GUID-605828B5-FCAE-4B8B-9D6F-A457325C722B-low.gif) Not-for-Profit Entity A Statement of Activities "Year Ended June 30, 20X8" (in thousands) Without Donor Restrictions With Donor Restrictions Total Operating: "Revenues, gains, and other support:" "Private contributions, other than bequests" " $60,000 " " $14,200 " " $74,200 " Bequests " 17,000 " " 17,000 " Government grants " 9,000 " " 9,000 " "Investment return appropriated by the governing board for operations" " 11,500 " " 1,000 " " 12,500 " Sales of educational materials " 2,000 " " 2,000 " Other " 2,000 " " 2,000 " Net assets released from restrictions " 17,000 " " (17,000)" - "Total revenues, gains, and other support" " 109,500 " " 7,200 " " 116,700 " Expenses: Program services: Research and medical support " 59,000 " " 59,000 " Public education " 9,500 " " 9,500 " Community service " 15,500 " " 15,500 " Total program services " 84,000 " " 84,000 " Supporting services: Fund raising " 15,000 " " 15,000 " Management and general " 9,000 " " 9,000 " Total supporting services " 24,000 " " 24,000 " Total expenses " 108,000 " " 108,000 " Increase in net assets from operating activities " 1,500 " " 7,200 " " 8,700 " Nonoperating: "Investment return, net" " 13,000 " " 1,100 " " 14,100 " "Investment return appropriated by the governing board for operations" " (11,500)" " (1,000)" " (12,500)" Contributions for endowment funds " 15,000 " " 15,000 " Other components of net periodic pension cost (135) (b) (135) "Pension-related changes other than net periodic pension cost" 90 (a) 90 Increase in net assets " 2,955 " " 22,300 " " 25,255 " "Net assets, beginning of year" " 147,110 " " 78,800 " " 225,910 " "Net assets, end of year" " $150,065 " " $101,100 " " $251,165 " "(a) Changes in the pension-related items not yet recognized in net periodic cost were due to $40 amortization of transition obligation, $100 amortization of prior service cost, and $50 net loss." "(b) Equals $40 amortization of transition obligation + $100 amortization of prior service cost + $120 interest cost - $125 expected return on plan assets." ##### [715-958-55-8](https://asc.understandingaccounting.org/asc/715/958/#715-958-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:44.737Z to 2026-09-10T01:02:44.737Z Record version: sha256:5c3e005e1774f3c7875c1162f20fbeac13b581ea72a3f5022ae2000ebe879433 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-07](https://asc.understandingaccounting.org/updates/asu-2017-07/). Source downloaded (UTC): 2026-09-10T01:02:46.650Z to 2026-09-10T01:02:46.650Z Record version: sha256:cb28a9a29d239e641954a1d007640d4ca09d4eaec61335e789ddf968aa011882 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-958-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/715/958/#65-transition-and-open-effective-date-information) SEC content: no ##### [715-958-65-1](https://asc.understandingaccounting.org/asc/715/958/#715-958-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:02:46.650Z to 2026-09-10T01:02:46.650Z Record version: sha256:e46d6b91ab7518e0adfd70ee10cd703332b8ba87e6697d16a1644c814828c360 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 03/23/2010 after the end of the transition period stated in FASB Statement No. 158, _Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans_, and FSP FAS 158-1.